Think for yourself

MARKETING: Tata Tea counters the youth craze for spiffier beverages by snapping its brands free of old tea marketing traditions.

Naa kahoge toh pachhtaoge." Tea drinkers seems to have heeded this advice, going by the number of fans Tata Tea Gold has found itself. In just over two years, this premium tea has managed to pick up a 2-per cent share, by value, of India's branded tea market.

That, together with the thorough repositioning of its other tea brands, has helped the Rs 3,059-crore Tata Tea Ltd elevate its combined share of branded tea to over 21 per cent, up from 19 per cent in December 2004.

Tata Tea is still way behind Hindustan Lever (HLL), which comfortably leads the domestic market for branded tea "" estimated at over Rs 3,000 crore in value. But the leader cannot afford to be complacent.

Tata Tea Premium, the company's main brand that was recently revamped, has been using Sania Mirza's exuberance to refreshen its appeal and take on HLL's Red Label. It helps that Mirza's famed T-shirts, though of her own independent choice, often go reasonably well with the broad theme.

Says Sangeeta Talwar, executive director, marketing, Tata Tea, "The idea is to convey that tea can be both physically and mentally rejuvenating, and bring in an aspirational element."

Though called a "premium tea", this brand is actually priced at the upper-end of the mid-priced segment. And since it was repositioned (shifted from "garden fresh" to the "rejuvenation" plank), it has added 1.6 percentage points to its earlier share of 8 per cent. This indicates at least the beginning of a bounce.

And the other brands?

Agni, at the lower-end with a strong presence in Uttar Pradesh and Madhya Pradesh, had been up against stiff competition from local price warriors such as Mohani and Today which had slashed prices.

But rather than do likewise and descend into that lowly battle, last April the company decided to upgrade Agni. It threw in a dash of long-leaf tea, brought it under the Tata Tea umbrella, and priced it at the lower-end of the mid-segment (that is, at Rs 140 per kg, up from the earlier Rs 120).

"People want some differentiation in their tea," reasons Talwar, "and so we made it stronger." With Agni available in packs of Rs 5 and Rs 10, sales have picked up, and small packs account for a quarter of its volumes.

But the surer success has been Tata Gold, a 15-per cent long-leaf aromatic blend, launched at the top end (at Rs 185 per kg). If you resist it, you'll regret it, said the advertising; such stimulation is not something to say "naa" to.

"The idea was to tell consumers that the tea is unique, with a great aroma," says Tarun Singh Chauhan, executive vice-president, Lowe, its ad agency, "Moreover, we moved away from the usual family relationships, targeting the youngster instead."

Meanwhile, Tata Tea's "chai mein twist, life mein twist" campaign for Tetley tea bags, initiated last summer, has evoked response too. In competition with Twinings, Taj and Dilmah, it has managed a 29-per cent share of the tea bags market.

The brand's task was to overcome barriers to tea bags, says Kamal Basu, executive vice-president, Saatchi & Saatchi. "We focused on the taste of the tea as opposed to the aroma or the refreshing quality. And the twist or surprise was in the great taste of the tea."

Yet, for all that effort, Tata Tea's overall sales graph has been losing its incline, with just 10 per cent growth in 2005-06, compared to over-20-per cent in 2004-05. This could be a reflection of a shift away from regular beverages towards spiffier refreshments, says Ashish Kaul, director, AC Nielsen.

Tata Tea, though, is not disheartened: the medicinal value of tea (rich in anti-oxidants), could lure the health-conscious youngster who thinks for him/herself. No "naa" to that.